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Mortgage

Protecting Borrowers in Dysfunctional Markets: A Major Challenge to CFPB

Jack M. Guttentag | Posted 06.25.2015 | Business
Jack M. Guttentag

The rotten-apple approach won't work in non-competitive markets where the general rule is that the information consumers need is not provided. An important example is the HECM reverse mortgage market, which may be the most dysfunctional and least competitive of all the major financial service markets.

Reflections on Mandatory Counseling

Jack M. Guttentag | Posted 06.13.2015 | Business
Jack M. Guttentag

I have written many articles on regulatory prohibitions and mandatory disclosures in the mortgage market, most of it critical, but this is my first look at mandatory counseling. Except for reverse mortgages, it has not been much used until recently.

A Plan B For Millennials Who Aren't or Won't Be Homeowners

Bob Lotich | Posted 06.10.2015 | Business
Bob Lotich

The topic of Millennials opting out of homeownership has become a major phenomenon in recent years. There is plenty of research, as well as various theories, as to why this is happening. Wage stagnation, job instability, high debt levels, lack of ability to save for a down payment, and the need for employment mobility are commonly cited causes.

Is Another Housing Price Bubble Looming?

Jack M. Guttentag | Posted 06.08.2015 | Business
Jack M. Guttentag

Reports of large price increases are now invariably accompanied by concerns about whether or not another bubble may be brewing.

America's Rate of Homeownership Matters to You--Whether You Own a Home or Not

Garrick T. Davis | Posted 05.29.2015 | Business
Garrick T. Davis

Even the most casually informed reader has likely heard at least some of the troubling news and numbers tied to homeownership in America today.

Why Small Home Mortgage Loans Are Hard to Find

Jack M. Guttentag | Posted 05.20.2015 | Money
Jack M. Guttentag

Providing small mortgage loans at non-subsidized prices affordable to the borrower has always been a challenge. The core problem is that the high cost of originating and servicing a mortgage loan is no smaller for a small loan than for a large one, but there's more to it.

9 States With The Most Identity Theft Complaints

24/7 Wall St. | Thomas C. Frohlich & Mark Lieberman | Posted 05.06.2015 | Business

Oh, Florida.

5 Questions to Ask Your Lender Before Locking a Rate

Jack M. Guttentag | Posted 05.07.2015 | Money
Jack M. Guttentag

The rules and procedures surrounding the lock process vary from lender to lender and are not subject to any mandatory disclosure requirements. To help borrowers avoid the potential missteps in the process, this article presents five questions you should pose to a lender before proceeding further.

Your Credit Score: Updates You Should Know

Jason Alderman | Posted 06.29.2015 | Money
Jason Alderman

Do you know your FICO Score? With a new version of the leading credit scoring system released this past fall, it's even more important to understand how you're managing your credit.

Reverse Mortgage Prices and Closing Costs: A Look at the Options

Jack M. Guttentag | Posted 06.25.2015 | Business
Jack M. Guttentag

Senior homeowners looking to shop the HECM reverse mortgage market for the best price, meaning the lowest interest rate and origination fee, have a major problem. Unlike the standard mortgage market where price data are available from many sources (including third party multi-lender sites), in the reverse mortgage market prices are hard to find.

Divorce Confidential: The Fight for the Family Residence

Caroline Choi | Posted 06.24.2015 | Divorce
Caroline Choi

Many divorcing couples stay in the family residence and live together pending the finalization of the divorce. While this might make sense for some families, it also creates an environment of stress and tension, not only for the divorcing couple, but also for the children.

Mortgage Qualification Rules Are Not Always Black and White

Jack M. Guttentag | Posted 06.23.2015 | Money
Jack M. Guttentag

Some of the more interesting questions I receive from readers are about unusual situations that may affect their ability to qualify for a mortgage. The rules are not always crystal clear, which is why lenders continue to rely on underwriters whose stock in trade is good judgment. Here are a few illustrations.

Mortgage Referral Fees and the Public Interest: 40 Years of Bungles

Jack M. Guttentag | Posted 06.08.2015 | Business
Jack M. Guttentag

Markets don't work well when one party to transactions has much more information than the other party, especially when the party with better information also controls the process. The two best illustrations of this rule are the markets for medical services and home mortgages.

Mortgage Points: A Powerful Option That Is Often Neglected

Jack M. Guttentag | Posted 05.25.2015 | Money
Jack M. Guttentag

Points are a unique feature of the US system; to my knowledge they are found nowhere else in the world. They offer borrowers a way to tailor the terms of the mortgage to their individual needs.

3 Ways To Pay Off Your Mortgage Faster

NextAdvisor.com | Posted 05.24.2015 | Money
NextAdvisor.com

There are a lot of benefits to paying off your mortgage faster. For one, you'll save money on interest charges, which can be tens of thousands of dollars over the course of a loan. Here are tactics you can use to pay off your mortgage faster.

Young and Entrepreneurial: From Action Figures Collector to Lenda Cofounder & CTO - Elijah Murray

David Ongchoco | Posted 05.15.2015 | Business
David Ongchoco

Elijah Murray's entrepreneurial journey is one that was filled with its fair share of ups and downs, along with spontaneous moments that have altered the course of Murray's career. As I asked him to talk about how he got to where he is today, Murray was able to clearly articulate every step.

What Is Live Mortgage Pricing?

Jack M. Guttentag | Posted 05.15.2015 | Money
Jack M. Guttentag

A live price quote is believable. A price that is not live, for any of the reasons given below, is not believable. Yet many borrowers shopping for a mortgage select lenders on the basis of price quotes that are not live.

Selecting the Type of Mortgage That Best Meets Your Needs

Jack M. Guttentag | Posted 05.09.2015 | Business
Jack M. Guttentag

Having choices is a strength of the system, because the different mortgage types can serve borrowers with different needs. The system is weak, however, in helping borrowers make good decisions.

Buying a New House Before Selling the Old One

Jack M. Guttentag | Posted 05.05.2015 | Money
Jack M. Guttentag

Whatever the reasons for the move, many face the same challenge: how to use the equity in their existing house to purchase the new one before completing the sale of the old one. Selling the old one first avoids this problem but requires two moves, which is a major expense and a hassle.

Mortgage Borrowers Thinking About Paying Down Their Loan Balance Should Know How Mortgage Amortization Works

Jack M. Guttentag | Posted 04.28.2015 | Business
Jack M. Guttentag

This article explains the essentials of amortization, and why in today's market it is a good idea for most borrowers to speed up the process -- if they can.

Money Management Tips For Couples Merging Households

Carrie Schwab-Pomerantz, CFP | Posted 04.20.2015 | Money
Carrie Schwab-Pomerantz, CFP

Moving in together is a big emotional step. It's also potentially a big financial step -- which can impact a relationship positively or negatively, depending on how open each partner is about money.

First Comes Love, Then Comes Mortgage

Redfin | Posted 04.15.2015 | HuffPost Home
Redfin

According to the Centers for Disease Control and Prevention, 27.4 percent of couples who cohabitate before marriage break up by the third year of living together. That might be something to think about if you already have an issue with your significant others' cleaning habits ... or lack thereof.

25 Financial Terms Everyone Should Know

LearnVest | Posted 03.31.2015 | Money
LearnVest

Do you know your AGI from your ARM from your PMI? Or does the mere mention of those acronyms make you go, "Huh?" If you don't speak personal finance, don't worry -- we're here to help.

In 2015, Will It Be More Renters or a Buyer Binge?

Dean Graziosi | Posted 03.11.2015 | Education
Dean Graziosi

If you don't anticipate a buying binge, investing in rental property or wholesaling to those investors who do may continue to be profitable strategies in the coming year.

5 Steps to Take Before Deciding to Buy a Home

Credit Karma | Posted 02.16.2015 | Money
Credit Karma

Buying a home can be a very rewarding experience, but it can also be baked in to what we feel we are "supposed" to do. Are you living someone else's dream or do you really want to own a home?